The politics of Indonesia take place in the framework of a presidential representative democratic republic whereby the President of Indonesia is both head of state and head of government and of a multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the bicameral People's Consultative Assembly. The judiciary is independent of the executive and the legislature.
The 1945 constitution provided for a limited separation of executive, legislative and judicial power. The governmental system has been described as "presidential with parliamentary characteristics". Indonesia was democratic upon independence, but became authoritarian in 1957 under Sukarno. It remained authoritarian under his successor Suharto until the Indonesian riots of May 1998 and the resignation of President Suharto, which led to the restoration of democracy in Indonesia.
Overview According to the V-Dem Democracy indices, in 2023, Indonesia was the 11th most electoral democratic country in Asia. Indonesia's political parties have been characterized as cartel parties with extensive power-sharing among parties and limited accountability to voters.
According to the American think tank Freedom House, Indonesia fails to meet many of the civil requirements for a consolidated, or maximalist, democracy. The court system often has many instances of corruption, and there is no due process in many civil and criminal matters.
History Old Order: Liberal Democracy and Guided Democracy
The "Old Order" (1950–1965) in Indonesia has long been understood to be a period of turmoil and crisis, characterized by rebellions and political unrest. The weakness of Indonesia's democracy and its gradual transition to authoritarianism during the Old Order can be attributed to conventional modernization theory, which suggests that without strong socioeconomic structures, successful transitions to democracy are unlikely. Indeed, it was not until the late 1960s when urbanization took place that the Indonesian government began to build a stronger democracy.
During the "Liberal Democracy" period (1950–1957), Indonesia aspired to renew its global status and achieve modernity as a newly independent country. In line with this vision, it sought to establish a democratic parliamentary system, bringing forth a "multi-party system, cabinet government under a prime minister, and a ceremonial president". However, the economic instability inherited from colonial rule significantly hindered their democratic nation-building vision: the Indonesian economy struggled to recover from the hardships of colonial occupation, with economic growth being stagnant and inflation reaching over 600% between the 1950s-1960s. Indonesia's economy heavily relied on the agricultural sector, but without diversification and industrialization, the government became vulnerable to polarization and instability.
Moreover, Indonesia's abundance of natural resources, such as coffee, rubber, and cocoa, made it susceptible to the political resource curse: Indonesia's resource wealth led to corruption, inequality, and political instability, hindering economic and social progress; the concentration of wealth and power in the hands of a few elites with a monopoly over these resources worsened the country's economic and political problems. This ultimately led to rising political tensions and the government's loss of control.
"Guided Democracy", which was in place from 1957 to 1966, aimed to bring about political stability, modernization, and development under the leadership of President Sukarno. Initially, Sukarno sought to build political institutions to bolster representation and resolve conflicts of regionalism, social class, and religion that plagued the Parliament during the Liberal Democracy era. However, power became increasingly centralized to the executive branch in the latter half of Guided Democracy, with Sukarno assuming a dictator-like role in the government. Indonesia's gradual transition to authoritarianism during the Guided Democracy period exemplifies the failure of the democratic project in the country due to weak socio-economic structures and the political resource curse that undermined its democratic development.
Transition to the New Order
The transition to the "New Order" in the mid-1960s, ousted Sukarno after 22 years in the position. One of the most tumultuous periods in the country's modern history, it was the commencement of Suharto's three-decade presidency. Described as the great dhalang ("puppet master"), Sukarno drew power from balancing the opposing and increasingly antagonistic forces of the army and the Communist Party of Indonesia (PKI).
By 1965, the PKI extensively penetrated all levels of government and gained influence at the expense of the army.Ricklefs (1991), pp. 271-283 On 30 September 1965, six of the military's most senior officers were killed in an action (generally labelled an "attempted coup") by the so-called 30 September Movement, a group from within the armed forces. Within a few hours, Major General Suharto mobilised forces under his command and took control of Jakarta. Anti-communists, initially following the army's lead, went on a violent purge of communists throughout the country, killing an estimated half million people and destroying the PKI, which was officially blamed for the crisis.; Ricklefs (1991), pages 280–283, 284, 287–290; Friend (2003), page 107-109, 113.
The politically weakened Sukarno was forced to transfer key political and military powers to General Suharto, who had become head of the armed forces. In March 1967, the Provisional People's Consultative Assembly (MPRS) named General Suharto acting president. He was formally appointed president one year later. Sukarno lived under virtual house arrest until his death in 1970. In contrast to the stormy nationalism, revolutionary rhetoric, and economic failure that characterised the early 1960s under the left-leaning Sukarno, Suharto's pro-Western "New Order" stabilised the economy but continued the official state philosophy of Pancasila.
New Order
Sukarno-Indonesia's first national figure and president-dissolved the elected assembly, introduced a concept known as Guided Democracy, and reinstated the 1945 constitution in 1959. The period of Guided Democracy was marked by the creation of a plethora of ministries, by the rise of the Indonesia Communist Party (Partai Komunis Indonesia; PKI) to a position of political dominance, and by the emergence of the army as a major anticommunist political force. The structure collapsed with an attempted coup d'état in 1965, which led to the downfall of Sukarno. Under Suharto, Sukarno's successor, Indonesia entered a new political era, officially called the New Order
The New Order () is the term coined by President Suharto to characterise his regime as he came to power in 1966. He used this term to contrast his rule with that of his predecessor, Sukarno (dubbed the "Old Order," or Orde Lama). The term "New Order" in more recent times has become synonymous with the Suharto years (1966–1998).
Immediately following the attempted coup in 1965, the political situation was uncertain, but the New Order found much popular support from groups wanting a separation from Indonesia's problems since its independence. The 'generation of 66' (Angkatan 66) epitomised talk of a new group of young leaders and new intellectual thought. Following communal and political conflicts, and economic collapse and social breakdown of the late 1950s through to the mid-1960s, the New Order was committed to achieving and maintaining political order, economic development, and the removal of mass participation in the political process. The features of the New Order established from the late 1960s were thus a strong political role for the military, the bureaucratisation and corporatisation of political and societal organisations, and selective but effective repression of opponents. Strident anti-communism remained a hallmark of the regime for its subsequent 32 years.
Within a few years, however, many of its original allies had become indifferent or averse to the New Order, which comprised a military faction supported by a narrow civilian group. Among much of the pro-democracy movement which forced Suharto to resign in 1998 and then gained power, the term "New Order" has come to be used pejoratively. It is frequently employed to describe figures who were either tied to the New Order, or who upheld the practises of his authoritarian regime, such as corruption, collusion and nepotism (widely known by the acronym KKN: korupsi, kolusi, nepotisme).Stop talk of KKN . The Jakarta Post (24 August 2001).
Reform era
The Post-Suharto era began with the fall of Suharto in 1998 during which Indonesia has been in a period of transition, an era known as Reformasi (English: ReformUS Indonesia Diplomatic and Political Cooperation Handbook, Int'l Business Publications, 2007, , page CRS-5Robin Bush, Nahdlatul Ulama and the Struggle for Power Within Islam and Politics in Indonesia, Institute of Southeast Asian Studies, 2009, , page 111Ryan Ver Berkmoes, Lonely Planet Indonesia, 2010, , page 49). This period has seen a more open and liberal political-social environment.
Indonesia's transition to democracy was a key part of the broader reform era. Democratic transitions tend to be grouped into two categories: bottom-up transitions where people rise up and overthrow an existing regime, and top-down transitions where an authoritarian ruler introduces liberalizing reforms leading to democratic transition.Clark et al, Foundations of Comparative Politics, 2018 Indonesia experienced a transition toward democratic rule that involved both bottom-up and top-down forces after the fall of the authoritarian regime in 1998, thus altering the political structure of the country. Differences in democratization across developing countries, including Indonesia, is common and may be explained by different theoretical models. While Indonesia has been considered a democracy since the fall of the authoritarian regime in 1998, democratic consolidation has not completely been achieved.Liddel, “Improving the Quality of Democracy in Indonesia”, 2002
A process of constitutional reform lasted from 1999 to 2002, with four amendments producing major changes. Among these were term limits of up to two five-year terms for the president and vice president and measures to institute checks and balances. The highest state institution is the People's Consultative Assembly (, MPR), whose functions previously included electing the president and vice-president (since 2004 the president has been elected directly by the people), establishing broad guidelines of state policy, and amending the constitution. The 695-member MPR includes all 550 members of the House of Representatives (, DPR) plus 130 members of Regional Representative Council (, DPD) elected by the 26 provincial parliaments and 65 appointed members from societal groups.
The DPR, which is the premier legislative institution, originally included 462 members elected through a mixed proportional/district representational system and thirty-eight appointed members of the Indonesian Armed Forces (TNI) and police (POLRI). TNI/POLRI representation in the DPR and MPR ended in 2004. Societal group representation in the MPR was eliminated in 2004 through further constitutional change. Having served as rubberstamp bodies in the past, the DPR and MPR have gained considerable power and are increasingly assertive in oversight of the executive branch. Under constitutional changes in 2004, the MPR became a bicameral legislature, with the creation of the DPD, in which each province is represented by four members, although its legislative powers are more limited than those of the DPR. Through his/her appointed cabinet, the president retains the authority to conduct the administration of the government.